Airbus Takes Opportunity to Lure United Away From Boeing With Incentives

Recently, Airbus seized the opportunity to court United Airlines, the largest operator of Boeing 737 Max 9 aircraft, amid ongoing safety concerns and production issues for the Max. Airbus arranged a meeting with United CEO, Scott Kirby, at its French headquarters in an attempt to lure United's business away from Boeing.

In the wake of the Boeing 737 Max groundings, Airbus perceived an opportunity to gain market share and grow its own fleet of airlines, thereby increasing its market dominance. The meeting, which was initially undisclosed, involved discussions regarding potential incentives and deals that Airbus could offer United in order to persuade the airline to switch its loyalty and contracts from Boeing to Airbus.

The meeting, orchestrated to strengthen relationships and encourage United to potentially switch its loyalties, ultimately gave Airbus the chance to increase its negotiating power with United. This implies that United's airlines could potentially receive better terms and pricing in the future, as well as more favorable remedies for their current manufacturing concerns.

Despite Airbus' efforts, United has not made any firm commitments towards canceling its order with Boeing. If United were to switch manufacturers, this would not only be a significant loss for Boeing but also send a warning message throughout the market that even the largest orders are subject to change. It would also reinforce the idea that an airline can change manufacturers if it isn't satisfied with the product or company, leaving every order up for grabs at every manufacturer.

Furthermore, if United were to switch to Airbus, it would send a message to other airlines and manufacturers that loyalty can be bought, and business is always up for negotiation. United's decision to meet with Airbus could motivate other airlines to reevaluate their manufacturer preferences and potentially trigger a chain reaction of order changes.

Regardless of the outcome, the meeting has already had an impact on how airlines and manufacturers will interact in the future. It demonstrates the increasing demand for aircraft and manufacturers' willingness to accommodate eager airlines.

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